Hiring is an exhaustive task, you say? Agreed!
How the heck do I make it better, you ask?
The answer is recruitment metrics
Wait! It’s not complex Math.
Recruitment metrics are some easy calculations that will give you a sense of understanding and direction regarding your company’s recruitment process. Quantifying a few aspects of hiring processes will help you plan better in terms of budget, effort and time spent.
Table of Contents
What are recruitment metrics?
Recruitment metrics help you analyze the health and efficiency of your recruitment process and hires. You can make amendments to your strategy to make it cost and time-efficient primarily.
In this blog, we will focus on the most common recruiting metrics. Every organization has different recruiting metrics that suit its needs and goals. Let us know in the comments which ones are you going to try.
Here are the important recruitment metrics
Time to fill
Time-to-fill is the number of days between when a job requisition is approved and when the offer is accepted by the applicant. In simple terms, it is the time taken to fill a position. This metric is an indicator of how efficient the recruiting process is. If more time is taken, then the recruitment strategies have to be optimised. Cutting down on time to fille means cutting down on time and expenses.
Cost per hire
This is the expense you incur for every employee you recruit. This includes money put in advertisements, recruiter fees for putting up a listing on websites, etc. To cut down your advertisement costs, work on your employer branding on social media and review websites like Glassdoor. To calculate, divide total expenses incurred for open roles and divide it by the number of hires made with that expense.
Quality of hire
This metric helps you understand what value your hires are bringing in. If you don’t see much value, you can work on improving the quality by rising your expectations. The scale to measure quality differs with companies. The key is to have parameters that are suitable for your organisation. For example, culture fit, leadership quality, attitude, performance, etc. can be some of the parameters.
Attrition rate
This determines how many employees leave in a period of time and are not replaced. There are two types; voluntary (Resignation, death, retirement) and involuntary ( layoffs, behavioral issues). A higher attrition rate means you have to look into your organizational culture, structure, growth and leadership. Higher attritions cause a lack of continuity and training gaps which ultimately affect growth and team dynamics. Conduct surveys among employees to understand what is wrong and work towards solutions to reducing voluntary attrition.
Applicant NPS
Applicant Net Promoter Scale is a way of quantifying the experience applicants and new hires had with the organization during the recruitment and onboarding process. You can send this to all applicants and receive feedback. Applicant NPS is a significant part of employer branding. NPS scale has three categories of feedback; promoters (9 and 10 on the scale), passives (7 and 8), and detractors (1 to 6).
Diversity metrics
Diversity can be in terms of age, cultural background, education, sexual orientation, leadership style, beliefs, job experience and more. This metric is used during recruitment and post recruitment as well. Look for diversity in your application pool and hire without bias. And then look for diversity in retention of employees and diversity across the organization. This is important to establish you treat fairly and give everyone equal opportunities.
Read: Significance of diversity at workplace
Application Completion Rate (ACR)
The ACR indicates whether the initial application process is smooth and easy for applicants to complete. It is important to measure ACR to analyse the effectiveness of job postings, applicant tracking, and candidate assessment tools. A lesser completion rate can indicate problems like browser incompatibility, lengthy process, unnecessary questions, etc.
Screening to Interview Conversion Rate (SICR)
SICR assesses the ratio of the candidates that are selected for the interview stage in the recruiting process. SICR evaluates how many qualified applicants make it into your hiring process. This process measures ratios that estimate whether the job description matches the true needs of the open role.
Retention Ratio (RR)
In a period, the measurement of the total number of employees at the beginning compared with the current number is the retention ratio. Lesser retention means employees are leaving for certain reasons. And this is a huge cost for employers as they have to intake more recruiting and training costs. Offering employee benefits and positive workplace culture are one of the proven ways to retain employees.
Read: What Do Employee Benefits Say About Your Organization?
Sourcing Channel Cost (SCC)
SCC is the total amount spent for each sourcing channel. Any organisation can have different sourcing channels with different budgets allocated to each. The value of each sourcing channel and its performance is important to analyse by measuring the cost. The most effective way for a business is to have the best cost-to-hire ratio by the sourcing channel.
Sourcing Channel Effectiveness (SCE)
Sourcing channel effectiveness measures the volume of job applicants by source. The sources of prospective job applicants who are most likely to be actual applicants can be measured by SCE. The effectiveness of a channel is measured by how higher the ratio is.
Recruitment Funnel Effectiveness (RFE)
RFE is a modern approach that measures every stage of your recruiting process that is, awareness, attraction, interest, applying, evaluating, interviewing and hiring. applicants sourced, resumes screened, candidates interviewed, final interviews, offer).
To measure RFE, below are the top 6 metrics you can use.
- Quality of hire
- Cost per hire
- Source of hire
- Time to hire
- Candidate experience
- Diversity in hiring
How to Measure the Recruiting Metrics Effectively
Here are some tips that will help you improve the accuracy of your recruiting metrics.
Survey Current Need
Question yourself what the current needs are in terms of the processes and the hires. Count in how your current needs are met. A pro-con list goes a long way!
Infer Future Needs
By understanding your goals and future needs, you will also contemplate if the current process is good enough to help reach future needs.
Decide Talent Mix Required to Fill Talent Gaps
Characterize the abilities and experience that could fill open roles in your organization. Effectively source and draw talent to blend in with your existing employees
Survey your employees
Understanding the best qualities and shortcomings of your employees will direct you in looking for candidates with specific characteristics/skills.
Study the best hiring process
Look at proactive methods that can deliver long-lasting benefits. Improve touchpoints, make it easy, and take accountability.
Quantify and Assess Promotion Rates
Assess the growth of the role you are looking for. Today, candidates are looking for companies that can pave a path to personal and professional growth. This largely affects the retention rate.
Persistently Refine Sourcing Strategies and Tactics
Keep updating your strategies based on your recruitment metrics and trending approaches.
